Carrying liquor liability insurance for bars is not an option in many states–it is a legal responsibility. In fact, dram shop laws often require that bar owners show proof of liability insurance before even applying for a liquor license.
Even without that legal obligation, it makes sense that a pub or tavern carry liability protection. After all, those same dram shop laws hold an establishment responsible for any injuries or property damages caused by an intoxicated patron.
Nothing Standard About Comprehensive Protection
General liability policies are not enough to protect a tavern from claims that arise due to consumption of alcohol. Liquor liability insurance for bars should be specifically written to include coverage of the following:
- Personal injuries incurred as a result of alcohol consumed by a bar patron
- Property damage that is the direct result of the consumption of alcohol by a tavern customer
Some liquor liability policies do not extend the coverage for injuries that may result due to fights between an inebriated customer and a third party. In some cases, an endorsement or stand-alone policy of assault and battery insurance may need to be added.
Tavern owners may also want to consider including an excess liability umbrella policy to augment the liability limits in the general policy. When choosing liquor liability insurance for bars, it is important to consult an experienced agent to ensure comprehensive coverage.